Cost of Starting an LLC in North Dakota 2024: A Comprehensive Guide

Cost of Starting an LLC in North Dakota

Embark on your exciting entrepreneurial journey in North Dakota with confidence, as our comprehensive guide helps you navigate the LLC world. Discover the costs of starting an LLC in North Dakota, and determine if this flexible business structure aligns with your company’s goals and needs.

LLCBase supports you every step of the way, covering everything from initial setup fees to ongoing expenses. Dive into the dynamic world of North Dakota LLCs and make informed decisions that make your business successful. Unleash the full potential of your North Dakota LLC and soar to new heights!

Let’s explore the costs of starting an LLC in North Dakota together! We’ve broken them down into initial costs, annual costs, and any extra expenses you may need to consider. Happy planning!

Initial Costs of Forming an LLC in North Dakota

Are you curious about the initial costs of forming an LLC in North Dakota? Check out the list below for a breakdown of expenses to get your business up and running!

1. Secretary of State Filing Fee

To form an LLC in North Dakota, you must file Articles of Organization with the North Dakota Secretary of State. The regular filing fee is $135; if you need expedited processing, it will cost an additional fee.

North Dakota Domestic LLC
  • Online Filing: $135 + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year (15th November every year) of registration: $50.
  • By Mail: Complete the application form and mail it to North Dakota, 600 E Boulevard Avenue Dept 108, Bismarck ND 58505-0500. This costs $135 + Not available for counter drop off (non-refundable).
North Dakota Foreign LLC
  • Online Filing: $135 + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year (15th November every year) of registration: $50.
  • By Mail: Complete the application form and mail it to North Dakota, 600 E Boulevard Avenue Dept 108, Bismarck ND 58505-0500. This costs $135.

2. Name Reservation Fee

If you want to reserve your desired LLC name before filing the Articles of Organization, you can do so for a $10 (online) and $10 (offline) fee. The name reservation is valid for 1 year, giving you ample time to prepare and submit your Articles of Organization. To reserve a name, you must submit a Name Reservation Request form to the Secretary of State by mail or in person, along with the required fee.

3. Registered Agent Fee

North Dakota requires all LLCs to have Registered Agent for the service of process. Registered Agent services typically cost between $50 – $150 per year, depending on the provider. Some popular Registered Agent service providers in North Dakota include Northwest Registered Agent, LegalZoom, and Incfile. Besides the annual fee, these providers offer additional services such as mail forwarding and compliance notifications.

4. Business Licenses and Permits

Depending on your business type and location, you may need to obtain various licenses and permits in North Dakota. The costs for these can vary widely, so it’s essential to research your specific business requirements. To identify the licenses and permits applicable to your business, you can use the North Dakota Business Portal (https://www.nd.gov/businessreg/) website.

5. Operating Agreement

Although not required by law, having an operating agreement for your North Dakota LLC is a good idea. You can draft one yourself or enlist the help of an attorney, which can cost anywhere from $1,000 or more. The operating agreement outlines your LLC’s ownership structure, management, and procedures. It can help prevent member disputes and provide clear decision-making and profit distribution guidelines.

6. Employer Identification Number (EIN)

Most LLCs need an EIN for tax purposes, bank account opening, and hiring employees. You can obtain an EIN in North Dakota for free from the Internal Revenue Service (IRS) by submitting an online application or mailing Form SS-4. The online application is the fastest method; you will receive your EIN immediately upon completion. If you choose to mail the form, the processing time can take up to four weeks.

Starting an LLC in North Dakota involves certain costs, making selecting the right support for a smooth experience crucial. The best LLC formation services in North Dakota offer expert assistance in comprehending, managing, and reducing expenses. Not only do these services simplify the setup process, but they also help identify solutions tailored to your unique needs. Consequently, your new LLC builds a solid foundation, optimally utilizing available resources and budget in North Dakota.

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Annual Costs of Maintaining an LLC in North Dakota

Wondering about the yearly expenses for sustaining an LLC in North Dakota? Peruse the list below to discover the costs of keeping your business compliant and thriving!

1. Annual Franchise Tax

All North Dakota LLCs are required to pay an annual franchise tax of No franchise tax, regardless of income or activity. This tax is due on the Not applicable in North Dakota. It’s important to note that newly formed LLCs are not exempt from this tax and must pay the No franchise tax fee for their first year of operation. You can pay the franchise tax online through the North Dakota Office of State Tax Commissioner website or by mailing a payment voucher.

2. Annual Report

North Dakota LLCs must file an annual report with the North Dakota Secretary of State every November 15 the year following formation. The filing fee is $50. The Statement of Information is due within 1 year (15th November every year) of the initial filing of the Articles of Organization and then every November 15 the year following formation during the anniversary month. The Statement of Information form can be submitted online or by mail.

3. Registered Agent Fee

As mentioned earlier, LLCs in North Dakota must maintain Registered Agent with an annual fee. This fee typically ranges from $50 – $150 per year, depending on the provider. When choosing Registered Agent, consider additional services offered, reputation, and customer support.

4. Business License and Permit Renewals

Depending on your business and location, you may need to renew licenses and permits periodically, which can incur additional fees. It’s essential to stay up-to-date on the renewal requirements and fees for your specific business licenses and permits to maintain compliance and avoid penalties. You can use resources like the North Dakota Business Portal (https://www.nd.gov/businessreg/) website and your local city or county government websites for information on renewal requirements and fees.

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Our #1 Pick: LegalZoom – ($0 + State Fees) Online LLC Setup

Additional Costs to Consider for Your North Dakota LLC

Ready to explore the extra expenses you may encounter with your North Dakota LLC? Browse the list below to be well-prepared, ensuring your business flourishes without surprises!

1. Tax Preparation and Accounting Services

Depending on the complexity of your business finances, you may need to hire a tax professional or accountant, which can cost anywhere from $100 to $1,000 or more per year. The cost of these services typically depends on factors such as the accountant’s experience, the size of your business, and the level of service required. To find a suitable tax professional or accountant, consider seeking recommendations from other business owners or using professional organization directories, such as the American Institute of Certified Public Accountants (AICPA).

2. Legal Services

Enlisting the help of an attorney for legal advice or to draft contracts can add to your LLC’s expenses. Attorney fees can range from $150 to $500 per hour or more, depending on the attorney’s experience and location. To save on legal costs, consider using online legal services, which offer legal document templates and attorney consultations at a fraction of the cost of traditional legal services.

3. Business Insurance

Depending on your industry and business activities, you may need various types of insurance, such as general liability, professional liability, or workers’ compensation. The insurance cost can vary widely based on factors like the size of your business, the amount of coverage needed, and the level of risk associated with your industry. For example, a small consulting business may pay around $500 annually for general liability insurance, while a construction company may pay several thousand dollars annually. To find the best insurance rates, consider getting quotes from multiple insurance providers and working with an insurance agent specializing in your industry.

4. Office Space and Utilities

Depending on your business, you may need to rent office space, which can add to your monthly expenses. The cost of office space in North Dakota can vary greatly depending on location, size, and amenities. Remember that in addition to rent, you’ll also need to cover utilities, such as electricity, water, and internet service, which can add several hundred dollars per month to your expenses.

5. Marketing and Advertising

To grow your business, you’ll likely need to invest in marketing and advertising, which can vary widely in cost depending on your strategy. Other marketing expenses may include social media advertising, email marketing, and print materials like business cards and brochures. To maximize your marketing budget, consider researching low-cost or free marketing strategies, such as social media engagement, content marketing, and networking events.

How to Save on North Dakota LLC Costs

Looking for ways to save on your North Dakota LLC costs? Check out the strategies below to keep expenses in check and ensure your business thrives!

1. Do-It-Yourself (DIY) Formation

You can save on professional fees by handling the LLC formation process yourself. You can file the Articles of Organization, obtain an EIN, and draft an operating agreement by researching the necessary steps and required documents. The North Dakota Secretary of State‘s website provides detailed information on forming an LLC, and the IRS website allows you to apply for an EIN online at no cost.

2. Utilize Online Resources

Many free or low-cost resources are available online to help with various aspects of your business, such as drafting an operating agreement or creating a marketing plan. For example, websites like SCORE and the U.S. Small Business Administration (SBA) offer free business templates, guides, and resources. Additionally, you can find low-cost marketing tools and platforms like Canva for designing marketing materials or Mailchimp for email marketing campaigns.

3. Shop For Professional Services

We recommend exploring various providers, including LegalZoom, for services such as Registered Agents and legal assistance to find the best value. By comparing rates and service offerings, you can ensure you obtain the most cost-effective solution for your business needs. Don’t hesitate to negotiate prices or inquire about discounts, as numerous providers are often willing to work with you to win your business.

4. Bundle Services

Some companies offer packages for LLC formation, Registered Agent services, and other business essentials, potentially saving you money. By bundling these services, you may save on individual service costs and streamline setting up and maintaining your North Dakota LLC. However, carefully compare bundled packages to ensure they include the services you need and offer true cost savings compared to purchasing services individually.

FAQs

What is the cost of starting an LLC in North Dakota?
The cost of starting an LLC in North Dakota is $135.
What is the filing fee for starting an LLC in North Dakota?
The filing fee for starting an LLC in North Dakota is $135.
Is the $135 filing fee for starting an LLC in North Dakota a one-time payment?
Yes, the $135 filing fee for starting an LLC in North Dakota is a one-time payment.
Is North Dakota’s filing fee to start an LLC higher or lower than other states?
North Dakota’s filing fee to start an LLC is considered average compared to other states.
Can I pay the North Dakota LLC filing fee with a credit card?
Yes, you can pay the North Dakota LLC filing fee with a credit card.
Can I pay the North Dakota LLC filing fee with a check?
Yes, you can pay the North Dakota LLC filing fee with a check.
Can I pay the North Dakota LLC filing fee with cash?
No, you cannot pay the North Dakota LLC filing fee with cash.
How do I obtain a certificate of good standing for my LLC in North Dakota?
You can obtain a certificate of good standing for your LLC in North Dakota by contacting the Secretary of State’s office.
How much does it cost to obtain a certificate of good standing for my LLC in North Dakota?
It costs $5 to obtain a certificate of good standing for your LLC in North Dakota.
Is there an annual fee for maintaining an LLC in North Dakota?
Yes, there is an annual fee for maintaining an LLC in North Dakota.
How much is the annual fee for maintaining an LLC in North Dakota?
The annual fee for maintaining an LLC in North Dakota is $50.
Do I need to file an annual report for my LLC in North Dakota?
Yes, you need to file an annual report for your LLC in North Dakota.
How much does it cost to file an annual report for my LLC in North Dakota?
It costs $10 to file an annual report for your LLC in North Dakota.
Can I file my LLC’s annual report online in North Dakota?
Yes, you can file your LLC’s annual report online in North Dakota.
When is the deadline for filing an LLC’s annual report in North Dakota?
The deadline for filing an LLC’s annual report in North Dakota is November 15th.
Is there a penalty for filing an LLC’s annual report late in North Dakota?
Yes, there is a penalty for filing an LLC’s annual report late in North Dakota.
How much is the penalty for filing an LLC’s annual report late in North Dakota?
The penalty for filing an LLC’s annual report late in North Dakota is $20.
Can I change my LLC’s name in North Dakota?
Yes, you can change your LLC’s name in North Dakota.
How much does it cost to change my LLC’s name in North Dakota?
It costs $15 to change your LLC’s name in North Dakota.
Can I file to dissolve my LLC in North Dakota?
Yes, you can file to dissolve your LLC in North Dakota.
What forms do I need to file to dissolve my LLC in North Dakota?
You need to file a Certificate of Dissolution (Form 26) to dissolve your LLC in North Dakota.
How much does it cost to file the Certificate of Dissolution to dissolve my LLC in North Dakota?
It costs $15 to file the Certificate of Dissolution to dissolve your LLC in North Dakota.
Can I reinstate my dissolved LLC in North Dakota?
Yes, you can reinstate your dissolved LLC in North Dakota.
How much does it cost to reinstate my dissolved LLC in North Dakota?
It costs $50 to reinstate your dissolved LLC in North Dakota.
Do I need to file an annual report after my LLC has been dissolved in North Dakota?
No, you do not need to file an annual report after your LLC has been dissolved in North Dakota.
Can I convert my LLC to a different business structure in North Dakota?
Yes, you can convert your LLC to a different business structure in North Dakota.
How do I convert my LLC to a different business structure in North Dakota?
You need to file the appropriate forms with the North Dakota Secretary of State to convert your LLC to a different business structure in North Dakota.
Are there any special tax requirements for LLCs in North Dakota?
No, there are no special tax requirements for LLCs in North Dakota.
Do I need to hire a lawyer to start an LLC in North Dakota?
No, you do not need to hire a lawyer to start an LLC in North Dakota, but it may be beneficial to do so.
Are there any specific requirements for naming my North Dakota LLC?
Yes, the name must include “Limited Liability Company,” “Limited Company,” “LLC,” or “LC” as an abbreviation, and must not be too similar to an existing business in the state.
How long does it take to form an LLC in North Dakota?
It generally takes 1-2 business days to process the paperwork and officially form your North Dakota LLC.
Do I need to file an annual report for my North Dakota LLC?
Yes, you must file an annual report and pay a $50 fee to keep your North Dakota LLC in good standing.
Is there a residency requirement for forming an LLC in North Dakota?
No, there is no residency requirement for forming an LLC in North Dakota.
Will I need a North Dakota address to form an LLC in North Dakota?
Yes, you will need a physical address in North Dakota to form an LLC in the state.
Can I operate my North Dakota LLC out of state?
Yes, you can operate your North Dakota LLC out of state, but you still need to maintain a North Dakota address and comply with state regulations.
Can I change the name of my North Dakota LLC?
Yes, you can change the name of your North Dakota LLC, but you will need to follow state requirements and file the appropriate forms.
Is it possible to reserve a name for my North Dakota LLC before starting the formation process?
Yes, you can reserve a name for your North Dakota LLC for a $10 fee, which is valid for 120 days.
Do I need to have an operating agreement for my North Dakota LLC?
No, you do not need to have an operating agreement for your North Dakota LLC, but it is strongly recommended to have one in place for legal protection.
What is the publishing requirement for North Dakota LLCs?
There is no publishing requirement for North Dakota LLCs.
How many members can be in an LLC in North Dakota?
An LLC in North Dakota can have one or more members.
Can I form a North Dakota Series LLC?
No, North Dakota does not allow the formation of Series LLCs.
Do I need to obtain any particular licenses or permits to operate my North Dakota LLC?
The licenses and permits required for your North Dakota LLC will depend on your industry and location. Check with the state to determine which licenses or permits you may require.
Is my personal information listed on the formation documents of my North Dakota LLC?
Yes, your personal information (name, address) will be included on the formation documents of your North Dakota LLC.
How long does it take to receive an EIN for my North Dakota LLC?
You can instantly receive an EIN for your North Dakota LLC by applying online through the IRS website.
Can I dissolve my North Dakota LLC if it has no assets or liabilities?
Yes, you can dissolve your North Dakota LLC even if it has no assets or liabilities, but you will still need to file appropriate paperwork with the state.
Who can serve as a registered agent for my North Dakota LLC?
A registered agent for your North Dakota LLC can be any resident of the state aged 18 years or older, or a qualified commercial registered agent located in the state.
Can I change my North Dakota LLC’s registered agent after filing formation documents?
Yes, you can change your North Dakota LLC’s registered agent at any time by filing the appropriate form and paying the applicable fee.
How do I know if my chosen LLC name is available in North Dakota?
You can search available names through the North Dakota Secretary of State’s website.
Can I obtain a DBA (Doing Business As) for my North Dakota LLC?
Yes, you can obtain a DBA for your North Dakota LLC, also called a “Trade Name Registration,” which allows you to operate your LLC under a different name.
How do I obtain a Certificate of Good Standing for my North Dakota LLC?
A Certificate of Good Standing for your North Dakota LLC can be obtained by requesting one from the North Dakota Secretary of State and paying the applicable fee.
Am I required to file documents with the Internal Revenue Service for my North Dakota LLC?
Yes, you must file an annual tax return with the IRS for your North Dakota LLC, even if the LLC has no revenue or expenses.
Can I start a North Dakota “professional” LLC for licensed professionals?
Yes, licensed professionals may form a North Dakota “professional” LLC, also called a Professional Limited Liability Company (PLLC).
Can I form an anonymous LLC in North Dakota?
No, North Dakota does not allow anonymous LLCs.
Can I form a foreign LLC in North Dakota if my business is already formed in another state?
Yes, you can form a foreign LLC in North Dakota if your business is already formed in another state.

Also Read

How to Save Money While Starting Your Business LLC in North Dakota

First and foremost, it’s important to carefully consider your budget and prioritize your expenses. Before making any major purchases, create a detailed budget and stick to it. This will help you avoid overspending and ensure that you are making smart financial decisions for your business.

One way to save money while starting your business LLC is to take advantage of available resources and support services. North Dakota offers a variety of programs and incentives for entrepreneurs, including small business grants, mentoring services, and networking opportunities. By utilizing these resources, you can access valuable support and guidance at little to no cost, helping to reduce your overall expenses.

Another way to save money is by carefully managing your overhead costs. When starting a business, it’s important to keep overhead costs as low as possible to maximize your profit margins. Consider leasing office space instead of purchasing, using cost-effective marketing strategies, and negotiating with suppliers for the best possible rates. By cutting unnecessary expenses and optimizing your operations, you can save money without sacrificing the quality of your products or services.

In addition, consider outsourcing certain tasks to freelancers or contract workers instead of hiring full-time employees. This can help you save money on benefits, payroll taxes, and other expenses associated with maintaining a full-time staff. With the rise of the gig economy, it’s easier than ever to find qualified professionals to help you with various tasks, from graphic design to accounting.

When it comes to purchasing equipment and supplies for your business, be strategic in your decision-making. Rather than buying brand new equipment, consider purchasing quality, reliable used equipment at a fraction of the cost. Look for deals and discounts from suppliers, and don’t be afraid to negotiate for the best price. By being resourceful and frugal in your purchases, you can save money without sacrificing the quality of your products or services.

Finally, consider seeking financing options to help fund your business venture. There are several options available for small businesses in North Dakota, including small business loans, lines of credit, and grants. By exploring different financing opportunities, you can secure the capital you need to launch and grow your business without stretching your budget too thin.

Starting a business LLC in North Dakota can be a challenging undertaking, but by following these tips and being mindful of your expenses, you can save money and set yourself up for success. With careful planning and strategic decision-making, you can build a profitable and sustainable business that will thrive for years to come.

Conclusion

Forming and maintaining an LLC in North Dakota comes with various costs, from initial filing fees to ongoing franchise taxes and Registered Agent fees. However, you can successfully establish and operate your North Dakota LLC by understanding these expenses and finding ways to save on costs. We hope this guide has provided you with the information you need to decide to form an LLC in North Dakota. Visit LLCBase for more information about starting an LLC in North Dakota. We wish you the best of luck on your entrepreneurial journey.

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